BILL ANALYSIS Ó
SB 611
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Date of Hearing: August 6, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 611 (Hill) - As Amended: August 4, 2014
Policy Committee:
TransportationVote:16-0
Utilities 15-0
Urgency: Yes State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill requires the CHP to conduct regular safety inspections
of companies operating modified limousines and requires such
limousines to be equipped with fire extinguishers. Specifically,
this bill:
1)Defines modified limousine as a vehicle extended to increase
the overall wheelbase to accommodate up to a maximum of 10
passengers including the driver and used in transportation for
hire.
2)Requires every passenger stage corporation - a company
providing scheduled services over fixed routes, and every
charter party carrier - a company providing transportation
services prearranged by a chartering party, to annually
furnish to the Public Utilities Commission (PUC) a list
identifying each of the company's modified limousines.
3)Requires the CHP, by July 1, 2016, to begin conducting safety
inspections, as specified, at least once every 13 months of
every modified limousine terminal operated by a passenger
stage corporation or charter party carrier.
4)Requires the PUC, by January 1, 2015, to provide the CHP with
the vehicle lists per (2) and requires the CHP to promulgate
regulations establishing an inspection fee based on the number
of limousines operated by each limousine company, sufficient
to cover the department's costs to administer the inspection
program. The fee is to be collected by the PUC and deposited
into the Motor Vehicle Account.
SB 611
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5)Requires every modified limousine to be equipped with two fire
extinguishers, as specified, and requires the driver to notify
passengers of the location of each fire extinguisher before
any trip.
FISCAL EFFECT
1)The PUC will incur annual special fund costs of around
$200,000 to implement procedures and collect the required data
on limousines for transmission to the CHP and to collect
inspection fees on behalf of the department. The PUC notes
that costs relate to the volume of new carriers, changes to
carrier fleets and carriers exiting the transportation
business, and the inherent deficiencies in the commission's
outdated data collection system. Depending on the level of
increase in calls from carriers regarding the new program, the
commission could also require additional, though minor
additional resources in consumer affairs. [Transportation
Reimbursement Fund]
2)Significant cost to the CHP to establish and implement an
ongoing safety inspection program for modified limousines.
According to the CHP, these costs cannot be determined until
the CHP receives the data from the PUC on the number of
limousines and terminals to be inspected. The annual costs for
each inspector and vehicle is about $175,000, plus a
supervising inspector for every eight line positions. Annual
program costs would likely be at least $2 million beginning in
2016-17. All of the program costs will be covered by the
inspection fees to be determined by the CHP, though the
program would likely require a loan from the Motor Vehicle
Account to cover start-up costs, including developing the
regulations.
COMMENTS
Background and Purpose . On May 4, 2013, a limousine fire
occurred on the San Mateo Bridge, killing five passengers who
were unable to escape the vehicle. Several of the other
passengers were able to exit the limousine only after climbing
through the partition window separating the passengers from the
driver. Similarly, on June 9, 2013, nine passengers successfully
exited a limousine in Walnut Creek prior to the vehicle catching
fire while idling.
SB 611
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In response, last year the author carried SB 338 that similarly
required modified limousines to be equipped with two fire
extinguishers and directed CHP to develop and implement a
limousine inspection program. SB 338 specified maximum and
minimum allowable inspection fees that the CHP could charge. The
Governor vetoed SB 338, due to a concern that the specified
maximum fee was inadequate, and requested that the Legislature
send him urgency legislation with a provision authorizing CHP to
charge a fee for the actual cost of the inspections.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081